Frequently Asked Questions

1. How do I set up a business in Singapore?

   Setting up a business in Singapore is easy. All businesses must be registered with the Accounting and Corporate Regulatory Authority (ACRA). Visit Contact Singapore’s Investors section on Doing Business in Singapore to find out all about registering your business, finding premises and recruiting talent for your company.

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2. What kind of government assistance and incentives are available?

   The Singapore Economic Development Board (EDB) has a comprehensive list of incentive and development schemes to assist companies, including various financial and tax incentives.

   Young start-ups can approach SPRING Singapore which offers start-ups assistance in financing, capabilities and management development, technology and innovation, and access to markets.

   Visit Contact Singapore’s Investors section on Government Assistance for more information.

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3. How does Singapore select which industries to provide incentives to?

   The Singapore Economic Development Board (EDB) has a comprehensive list of incentive schemes for companies. The evaluation is done based on the merits of the project and the strength of the application. For a list of some of the key industries in Singapore, please visit the EDB website.

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4. What are the Free Trade Agreements (FTAs) Singapore has?

   Singapore has 18 FTAs in place, covering key economies that represent about 60% of the global GDP. For the full list of FTAs, visit the Singapore FTA Network. You can also find information on how your business can benefit from the reduced import tariffs resulting from the FTAs.

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5. What is the Global Investment Programme (GIP)?

   The Global Investor Programme (GIP) eases the way for foreign investors, entrepreneurs and business executives to set up and conduct businesses in Singapore. The Economic Development Board (EDB) provides assistance in linking up foreign entrepreneurs and investors with local business networks, thus opening up more opportunities for business collaborations.

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6. What is the minimum amount for investment through GIP?

   Under the GIP scheme, applicants can choose one of the following investment options:

   Option A: Invest at least S$2.5 million in a new business entity or expansion of an existing business operation.

   Option B: Invest at least S$2.5 million in a GIP-approved fund.

   The option of partial investment in residential property for owner occupancy would no longer be available.

   For more information, please click here.

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7. I am exploring possibilities of relocating my business to Singapore or within the region. I would like to know the benefits of relocating my operations in Singapore vs somewhere else. Is there someone I can talk to?

   The EDB offers incentives to overseas companies who wish to establish their presence in Singapore. You can contact EDB at (65) 6832 6832, via email at clientservices@edb.gov.sg or visit the website.

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8. What is the Regional/International Headquarters Award?

   The RHQ / IHQ award aims to encourage companies to use Singapore as the base to conduct HQ management activities.

   For more information, please click here to download the Headquarters Award leaflet.

   To contact an EDB officer on the RHQ scheme, please write to clientservices@edb.gov.sg

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9. What is the procedure to set up a Regional Headquarters (RHQ) or International Headquarters (IHQ) in Singapore?

   Before you apply

   • Learn more about RHQ and IHQ on EDB’s website. Download and read the write-up (PDF) for more information.
   • Ensure that you qualify for the programme. Contact EDB if you need help.
   • Meet with the EDB officer-in-charge to discuss your application. The officer can help you work out the eligibility criteria and determine if you meet them.

   Applying for RHQ

   • Obtain the RHQ Subform (EXCEL) and Core Form (EXCEL) from EDB.
   • Submit both forms in hard and soft copy to EDB.
   • Wait 2 weeks for approval from EDB.

   Applying for IHQ

   • Obtain the application form from EDB.
   • Submit the application form with the supporting documents.

   Upon successful application

   • Receive notification from EDB
   • Keep proper financial records.
     E.g. accounts, profit & loss, audited financial statements
   • File your company taxes and claim under RHQ.

   For more information about the process, please write to clientservices@edb.gov.sg

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10. What sources of venture capital is available in Singapore? Which organisations can I approach?

    There is a growing base of venture capital firms in Singapore. For a listing of venture capital firms in Singapore, you could refer to the Investor Relations Asia Pacific website.

    SPRING Singapore also administers several schemes which provide government funding for seed capital. They include:

    • SPRING Start-up Enterprise Development Scheme (SPRING SEEDS) – Two dollars to every dollar (from 1 December 2008 to 31 January 2011) matching funding of up to S$1million, to be matched against investments third-party investor(s). The minimum third-party investment must be S$75,000
    • Technology Enterprise Commercialisation Scheme (TECS) – a competitive grant to convert breakthrough technology ideas and proprietary IP into a promising business. The TECS is a competitive grant in which proposals are ranked based on the evaluation of both technical and commercial merits by a team of reviewers, and the best are funded.
      • Proof of Concept (POC) – For applicants who wish to develop proprietary ideas at conceptualisation stage – Up to 100% of qualifying costs for each project will be supported, up to maximum of S$250,000.
      • Proof of Value (POV) - For applicants who are keen to carry out further research and development on a technology project, including the development of a working prototype – Up to 85% of qualifying costs for each project will be supported, up to maximum of S$500,000.
    • Young Entrepreneurs Scheme for Startups (YES! Startups) – Up to S$50,000 for youth between 18 to 26 years old to start their innovative business. SPRING matches four dollars for every one dollar that the youth raises through self-funding, schools or third-party sources. The grant is capped at S$50,000.

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If you have more questions relating to the Economic Development Board, please click here http://www.ifaq.gov.sg/edb/apps/fcd_faqmain.aspx

1. I’m looking for a job. Can Contact Singapore help me?

   In addition to the commercial recruitment sites, you may also visit the Contact Singapore job portal at www.contactsingapore.sg/jobs to view the latest opportunities. Contact Singapore also organises career-related events and activities. To receive news and updates, you may request to be added onto its mailing list.

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2. What is the working language in Singapore?

   The language used for business and education in Singapore is English.

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3. Do employers in Singapore offer different remuneration packages based on nationality?

   Remuneration packages in Singapore are offered strictly based on merit. Nationality does not come into play.

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4. What is an Employment Pass?

   The Employment Pass (EP) is for foreign professionals and executives who wish to work in Singapore. They should:

   • Earn a fixed monthly salary of more than $2,500; and
   • Have recognised qualifications.

   To check if you qualify for an EP, please take the Employment/S Pass Self-Assessment Test.

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5. What’s the difference between the P1, P2, Q and S Passes?

   These are work passes catering to different types of talent. For details, visit the Ministry of Manpower website.

   • P1 Pass – for applicants earning a fixed monthly salary of more than $7,000.
   • P2 Pass – for applicants earning a fixed monthly salary of more than $3,500 and up to $7,000 and he/she possesses recognised qualifications.
   • Q1 Pass – for applicants earning a fixed monthly salary of more than $2,500 and he/she possesses recognised qualifications.
   • S Pass – for mid-level skilled foreigners who earn a fixed monthly salaryof at least $1,800. S Pass applicants will be assessed on a points system, taking into account multiple criteria including salary, education qualifications, skills, job type and work experience.

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6. How do I apply for an employment pass or work visa?

   You can apply for an Employment Pass (EP) through:

   • EP Online

     EP Online is a one-stop portal for companies to conduct EP transactions online. Applicants will receive an instant acknowledgment of their submission. The processing time for EP applications is two weeks. Applicants can also use EP Online to check application status.

   • Application form

     Manual applications can be submitted at any SingPost Office. The application outcome will be mailed to the employer about three weeks from the date of the application.

   An administrative fee of $10 will be charged for every EP application submitted.

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7. How much do I have to pay for a successful Employment Pass application?

   For each successful Employment Pass application, the total fee is as follows:

   • $10 upon submission of the application;
   • $30 per year or part thereof for an Employment Pass;
   • $20 per issue of a Multiple Journey Visa (if applicable); and/or
   • $20 per issue of a Single Journey Visa (if applicable).

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8. What documents must be submitted for an Employment Pass application?

   • EP Online

     For Employment Pass (EP) applications made using EP Online, companies are not required to send any supporting documents to Work Pass Division. Once an application has been approved, the online In-Principle Approval (IPA) letter will specify the supporting document(s) to be submitted at the Work Pass Division counters during the collection of the pass.

   • Application form

     For manual EP applications, the following documents are required:

     • A copy of the applicant’s educational documents and past employment testimonials (not required for those who have held or applied for an Employment/ S Pass in the last two years);
     • A passport size photograph of the applicant (taken within the last three months);
     • A copy of the personal particulars page of the applicant’s travel document; and
     • Business Profile/ Instant Information/ Registration papers.

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9. How can I check the status of my employment pass?

   Applications submitted using EP Online are processed in two weeks and applicants can check the application status using EP Online. For manual applications, the outcome of the application will be mailed to the employer about three weeks from the date of application.

   Do note that the processing time may be longer during peak periods or when the case requires inputs from various economic agencies.

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10. How long is an Employment Pass valid for?

    The validity period of an EP varies for:

    • First-time applicants – up to two years;
    • Employment Pass renewals – up to three years.

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11. Can Employment Pass holders bring their spouse, children, parents and parents-in-law to Singapore?

    Employment Pass holders can apply for a Dependant’s Pass and/or Long-Term Visit Pass (LTVP) for their family members.

    • Dependant’s Pass

      Both P and Q Pass holders can apply for a Dependant’s Pass for their:

      • Spouse; and/or
      • Unmarried or legally adopted children under 21 years of age
    • Long-Term Visit Pass

      P Pass holders can also apply for a Long-Term Visit Pass for their:

      • Common law spouse;
      • Unmarried daughters above 21 years of age;
      • Handicapped children above 21 years of age;
      • Step-children; and
      • Parents/parents-in-law

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12. How do I upgrade my employment pass status, for example from Q1 to P2?

    You may apply for an upgrade of your employment pass status by submitting your letter of request as well as other supporting documents to MOM for consideration. Depending on the complexity of the case, the processing time to review your request may take a longer time. You will be notified of the outcome of your request by writing.

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13. What is the Personalised Employment Pass (PEP)?

    The Personalised Employment Pass (PEP) is for foreigners who want to work in Singapore without being tied to a specific employer. Unlike the Employment Pass (EP), the PEP is granted on the strength of an EP holder’s individual merits. The PEP allows the holder to remain in Singapore for up to six months in between jobs to evaluate new employment opportunities.

    The PEP will be issued once, with a validity of 5 years. It will be non-renewable. Former EP holders will retain the dependant privileges of their original EP type while overseas foreign professionals whose last drawn fixed monthly salary overseas was at least S$7,000 will be accorded dependant privileges equivalent to that enjoyed by P1 EP holders. A minimum annual fixed salary requirement of S$30,000 will apply.

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14. What are the benefits of a Personalised Employment Pass (PEP)?

    The Personalised Employment Pass (PEP) will help Singapore to better attract and retain global talent. It will be granted to selected overseas foreigners, Employment Pass (EP) holders and foreign graduates of our institutions of higher learning. Their contributions will help to grow the overall economic pie in Singapore, creating more jobs and opportunities for Singaporeans.

    There is intensified global competition for talent, and the PEP will strengthen Singapore’s attractiveness to highly skilled foreigners. Other locations such as Hong Kong, the United Kingdom, Canada and Australia also have similar schemes which offer them the flexibility to stay or enter the country for a fixed period of time.

    Currently, the issue of an EP is tied to a specific employer. Any change of employer requires a fresh application. If the EP holder leaves the company, his EP is cancelled and he must leave Singapore unless he finds a new employer. In contrast, the new PEP is not tied to a specific employer and will be granted on the strength of an EP holder’s individual merits. The PEP allows the holder to remain in Singapore for up to six months in between jobs to evaluate new employment opportunities. This helps to retain selected global talent who would otherwise have to leave Singapore.

    The PEP will be issued once, with a validity of 5 years. It will be non-renewable. Former EP holders will retain the dependant privileges of his original EP type while overseas foreign professionals whose last drawn fixed monthly salary overseas was at least S$7,000 will be accorded dependant privileges equivalent to that enjoyed by P1 EP holders.

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15. Who will qualify for Personalised Employment Pass (PEP)?

    The following groups of foreigners will be eligible for a Personalised Employment Pass (PEP):

    • Overseas foreign professionals whose last drawn fixed monthly salary overseas was at least S$7,000
    • The last drawn fixed monthly salary overseas should be no more than six months from the time of the application.
    • Former P1 Pass holders who are residing overseas
    • Former P1 Pass holders should not be unemployed for longer than a continuous period of six months at the point of application.

    P1 Pass holders
    Existing and new P1 Pass holders with less than two years’ working experience on a P pass will be accorded in-principle approval for the PEP upon application.

    P2 Pass holders
    P2 Pass holders with at least two years’ working experience on a P Pass. They should earn a fixed salary of at least S$30,000 in the preceding year.

    Q1 Pass holders
    Q1 Pass holders with at least five years’ working experience on a Q1 pass. They should earn a fixed salary of at least S$30,000 in the preceding year.

    Foreign graduates from institutions of higher learning in Singapore
    Foreign graduates from institutions of higher learning in Singapore with at least two years’ working experience on a P or Q1 Pass. They should earn a fixed salary of at least S$30,000 in the preceding year.

    (The Ministry of Manpower will be flexible in considering individual cases that do not meet the minimum criteria but merit the issuance of a PEP.)

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16. How can I apply for a Personalised Employment Pass (PEP)?

    You can apply for a Personalised Employment Pass (PEP) if you are currently working in Singapore via the following options:

    • PEP Online

      PEP Online is a one-stop portal for existing Employment Pass (EP) holders to submit their PEP applications. The processing time for PEP application is two weeks. Applicants can also use PEP Online to check the status of their application. The application outcome will also be mailed to the residential address in Singapore.

    • PEP Application form

      Manual applications can be submitted at any Singpost Office. The application outcome will be mailed to the applicant’s residential address in Singapore about two weeks after the application was made.

    An administrative fee of $10 will be charged for every PEP application submitted.

    Overseas applicants are required to submit their applications manually. You will be required to send the completed original application form to a local contact in Singapore. The local contact can then submit the application form and pay the $10 application fee to SingPost post office on the applicant’s behalf.

    If you are currently in Singapore on a Social Visit Pass, you can submit the completed form and make payment of the $10 administrative fee at any SingPost post office. However, you are still required to provide the details of a local contact person in Singapore. You will have to ensure that your Social Visit Pass is valid while waiting in Singapore for the outcome of their PEP application.

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17. Must a Personalised Employment Pass (PEP) applicant be employed at the time of application for a PEP?

    If the applicant is overseas and his/her last drawn fixed overseas salary is S$7000 (no more than six months from the time of application) or if the applicant is a former P1 Pass holder (who had not been unemployed for more than six months continuous at the point of application), he will be eligible for the Personalised Employment Pass (PEP).

    If the applicant does not fall into the above category, he should have been on a P or Q1 Pass for 2 years and 5 years respectively, and must have earned a fixed salary of at least $30,000 in the preceding year to be eligible for the PEP. Foreign graduates from institutions of higher learning in Singapore with at least 2 years’ working experience on a Employment Pass, earning a fixed salary of at least S$30,000 in the preceding year will also be eligible for the PEP.

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18. Can the Personalised Employment Pass (PEP) holder choose to stay in Singapore without a job?

    Yes. The Personalised Employment Pass (PEP) allows a maximum period of 6 continuous months without a job. Thereafter, the PEP will be cancelled.

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19. Can I look for a job in Singapore while visiting the country at the same time?

    Yes, you can look for a job while visiting Singapore but you cannot undertake employment until you have a proper work visa. You may consider applying for the Employment Pass Eligibility Certificate (EPEC) which allows foreigners with tertiary qualifications to stay in Singapore for up to a year while they’re looking for jobs.

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20. What is an EntrePass?

    The EntrePass is an Employment Pass for foreign entrepreneurs who would like to start businesses in Singapore.

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21. How do I apply for an EntrePass?

    Applicants can submit the application form at any SingPost office. An acknowledgement letter will be sent by mail within two weeks.

    As the approval of an EntrePass application requires additional assessments, inputs from Standards, Productivity and Innovation Board (SPRING) and time, the processing time may take about six weeks from the date of receipt of the application.

    If successful, you will be issued with an Approval-In-Principle (AIP). You are to register the company/business with the Accounting and Corporate Regulatory Authority (ACRA). Upon receipt of the company’s Business Profile/Instant Information with ACRA, the applicant needs to send/fax the following documents to the Work Pass Division for processing of the EntrePass:

    • A copy of the company’s Business Profile/Instant Information;
    • Approval In-Principle Letter; and
    • A bank statement, from the Singapore-based company bank account, of at least $50,000.

    Documents can be sent to:
    Work Pass Division
    Ministry of Manpower
    18 Havelock Road
    Singapore 059764

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22. What are the criteria for the approval of the EntrePass?

    For all new EntrePass applications:

    • Company must be registered as a Private Limited Company
    • Applicant to hold at least 30% shareholding in the company
    • Company must have at least S$50,000 paid-up-capital (From 1st April 2010, a bank statement, from the Singapore-based company bank account, of at least $50,000 is required for verification.)
    • Company must not be registered for more than six months at the point of
      EntrePass application.

    In addition, the proposed business venture must not be engaged in illegal activities. Businesses not of an entrepreneurial nature (e.g. coffee shops/hawker centres/food courts, bars/night clubs/lounges, foot reflexology/massage parlours, karaoke lounges, acupuncture/traditional chinese medicine/herbal dispensing, employment agencies and geomancy etc) will also not be considered for an EntrePass.

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23. Do I have to pay income tax?

    If you are a Singaporean, or Singapore Permanent Resident (SPR) who has established your permanent home in Singapore, or foreigner who has stayed/worked in Singapore for 183 days or more in the previous year, you will need to pay tax. Non-residents are exempted from paying income tax if they have been employed for 60 days or less of a calendar year, unless they are directors, public entertainers or practising a profession in Singapore. Non-residents are taxed only on income earned in Singapore at a flat rate of 15% or the resident rates, whichever is higher. Non-residents may not claim for personal reliefs.

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24. As an expatriate, what do I need to know about paying taxes? Do I have to pay taxes?

    You will need to pay taxes, and the amount of tax that you pay depends on how much you have earned and on your tax residency in Singapore.

    As a resident, you will be taxed on all income earned in Singapore and any overseas income that was brought into Singapore prior to 1 Jan 2004. Your income, after deduction of tax reliefs, will be taxed at progressive resident rates. The foreign-sourced income (with the exception of those received through partnerships in Singapore) brought into Singapore on or after 1 Jan 2004 is tax exempt.

    Tax implications at a glance

    If your period of stay (including work) in Singapore	Resident status	Tax implications
    Is 60 days or less	Non-resident	Your short term employment income is exempt from tax.
    Is 61 to 182 days in a year	Non-resident	Your income earned in Singapore will be taxed at 15% or progressive resident rates, whichever is higher. Director’s fees and other income earned in or derived from Singapore are taxed at the prevailing rate of 20%
    Is at least 183 days in a year	Resident for that year	All your income will be taxed at progressive resident rates.  You may claim tax reliefs.
    Is at least 183 days for a continuous period over two years	Resident for both years	As above
    Covers three consecutive years	Resident for both years	As above

    Please refer to the Inland Revenue Authority of Singapore’s website at www.iras.gov.sg for more information.

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25. How much tax would I have to pay?

    Singapore’s taxation rate is one of the most competitive in the world. After deducting personal reliefs, personal
    income taxes are levied on a graduated scale which starts at 0% and is capped at a favourable 20%. There is no tax on income derived and received outside of Singapore, and no capital gains or estate taxes to worry about.

    Chargeable Income (SGD$)		Rate (%)	Gross Tax Payable (SGD$)
    On the first On the next	$20,000 $10,000	0 3.50	$0 $350
    On the first On the next	$30,000 $10,000	- 5.50	$350 $550
    On the first On the next	$40,000 $40,000	- 8.50	$900 $3,400
    On the first On the next	$80,000 $80,000	- 14	$4,300 $11,200
    On the first On the next	$160,000 $160,000	- 17	$15,500 $27,200
    On the first On the next	$320,000 $320,000	- 20	$42,700

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26. Where can I obtain labour market information (eg: employment, unemployment, retrenchment, wages data)?

    All published labour market information is available online on the Ministry of Manpower (MOM) website.

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27. Where can I obtain information on workweek patterns, annual leave entitlement and sick absenteeism?

    You can refer to the “Conditions of Employment” publication which provides a snapshot of the employment conditions such as workweek patterns, annual leave entitlement and sick absenteeism. The report also examines the prevalence of alternative and employment practices, including flexible work arrangements and contingent work and shift work. It also discusses the extent to which employers are providing pro-family benefits such as family care, maternity and paternity leave.

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28. Where can I obtain information on staff leave/ welfare benefits?

    You may refer to the ‘Staff Leave and Welfare Benefits‘ publication. This paper examines the provision of staff leave and welfare benefits by private sector establishments each employing at least 25 employees. It covers leave benefits such as marriage, family care and study and examination leave; and welfare benefits like meal, transport and housing benefits. Some statistics on staff leave is also available from the occasional paper “Conditions of Employment“.

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If you have more questions relating to the Ministry of Manpower, please click here http://www.mom.gov.sg/Pages/FAQ.aspx

If you have more questions relating to Contact Singapore, please click here http://www.contactsingapore.sg/faqs/